World News
Norwegian's Bunker Expense Declines Almost 3% Year on Year for 3Q 2016
In its third quarter (Q3) financial report for 2016, Norwegian Cruise Line Holdings Ltd. (Norwegian) [NASDAQ:NCLH] says its fuel expense fell 2.9 percent year on year, totalling $86.250 million during the quarter, compared to $88.829 during the same period of 2015.
Net of hedges, Norwegian says its fuel price decreased 11.5 percent year on year in Q3 to $500 per tonne, from $565 per tonne during the same period of in 2015.
"As of September 30, 2016, the Company had hedged approximately 90 percent, 79 percent, 57 percent, 48 percent, and 5 percent of its total projected metric tonnes of fuel consumption for the remainder of 2016 and full year 2017, 2018, 2019 and 2020, respectively," said Norwegian.
The company says a loss of $2.5 million in other expense in 2016 was recorded due to an ineffective portion of Norwegian's fuel hedge portfolio on market volatility.
"Recent significant weakening of certain foreign currencies, primarily the British Pound, against the U.S. dollar, combined with an increase in fuel prices have placed pressure on expectations for the coming year," said Wendy Beck, Executive Vice President and CFO for Norwegian.
"Despite these headwinds, we still anticipate delivering double-digit growth in Adjusted EPS in 2017."
Norwegian reported a GAAP net income of $342.4 million for Q3, which compares to $251.8 million during the same period last year.
Meanwhile, adjusted net income for the period was $369.3 million, compared to $311.1 million during the same period of 2015, and total revenue increased 15.6 percent year on year to $1.5 billion.
Overall, Norwegian says it expects to generate "record earnings" in its full year 2016 results.
As Ship & Bunker reported in September, Norwegian announced the completion of the installation of an exhaust gas scrubber system on the Norwegian Jewel, part of NCL's 2014 plan to install 28 scrubbers across six of its ships.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
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